The XRP market is at a turning point. For two consecutive weeks, traders have been increasing short positions, while sentiment on social media remains negative.
Traders are expecting a decline in Ripple.
According to Coinglass, short positions dominate the Ripple market. The ratio of long to short positions has remained below one for almost two weeks, indicating a prevalence of bearish sentiment among traders. What does the position ratio say?
The ratio of long to short positions is a key indicator of market sentiment. A value below one indicates that market participants expect a price decline.
The weighted sentiment on XRP, taking into account the tone of discussions on social media and online platforms, remains negative at -0.40. This suggests that selling pressure is increasing and investors are uncertain about Ripple's short-term dynamics.
It was previously reported that the activity of Ripple whales has sharply increased: millions of tokens were moved on Binance.
If the current trend continues, XRP may break an important psychological level in the near future. In this case, the price could sequentially decrease to $1.99 and then test the annual low at $1.61. If demand for the altcoin increases, the bearish forecast may not materialize. In that case, the price could overcome resistance at $2.29 and aim for $2.50.
The coming days will determine Ripple's short-term dynamics. The prevalence of short positions with a ratio of 0.93 and negative social sentiment (-0.40) creates significant pressure on the price. However, the cryptocurrency market is known for its unpredictability, and an unexpected increase in demand could quickly reverse the current trend.
#Ripple $XRP